Stamp Duty Rates – An Investors Perspective

The Chancellor of the Exchequer recently announced that the purchase of any residential property between the 8^thJuly 2020 and the 31^st March 2021 would only incur a payment of Stamp Duty for any properties above £500,000.00. However, these rates do not wholly apply to those people who are purchasing additional dwellings i.e. they already own one dwelling and are purchasing another for example a buy to let property or a second home. In those circumstances higher rates of Stamp Duty brought in by the Government a couple of years ago still remain (albeit at an amended rate)  and those new rates are as follows:  

Up to £500,000	3%
The next £425,000 (the portion from £500,001 to £925,000)	8%
The next £575,000 (the portion from £925,001 to £1.5 million)	13%
The remaining amount (the portion above £1.5 million)	15%

  There is a saving as the previous rates were:  

£40,000 up to £125,000	3%
over £125,000 to £250,000	5%
over £250,000 to £925,000	8%
over £925,000 to £1.5 million	13%
over £1.5 million	15%

  Companies buying who have a property portfolio held under a limited company or clients buying additional residential properties in their sole name will not be exempt up to £500,000 as some appear to think. However, there are savings for those now purchasing over £125,000. Therefore, whilst the reduction is a welcome one there still is a substantial tax for those buy to let investors to think about. Should you wish to contact Kieran Quinn at P.A.Duffy & Co Solicitors, please call our Dungannon office on 028 8772 2102. You can also contact our Dublin office on 01 533 7860 or complete an Online Enquiry Form and we will soon be in touch.